John Colantuoni • Jefferies

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CEO George Chamoun suggested that annual performance is a better indicator of market share gains than quarterly fluctuations. CFO Bill Zarella added that their guidance for mid-teens share gains for the year is intact, even with a more conservative flat-to-down market assumption. Regarding commercial, Chamoun reported they are in the very early stages but celebrated a key milestone: selling the first vehicle on their new commercial platform at the Houston greenfield location.

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CFO Bill Zerella confirmed the mid-teens unit growth assumption is consistent with recent years' market share gains. CEO George Chamoun identified two potential upside vectors: a better-than-expected wholesale market and faster adoption of ACV's new value-added services like AI-powered pricing tools. On competition, Chamoun emphasized ACV's position as a neutral, independent partner with a broad suite of offerings, suggesting dealers will prefer partnering with them over competitors like the one mentioned.

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CEO George Chamoun highlighted Texas as a key success story, with some of the company's highest year-over-year gains, demonstrating successful expansion beyond its East Coast stronghold. He noted that new products like ClearCar are aiding this expansion. Interestingly, he revealed that while Canada was an early consideration, ACV has been pulled into European markets first by partners and will pursue an asset-light, self-inspection model there.

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CEO Brian Chesky emphasized a strong focus on quality, stating that every Experience is vetted before going live, resulting in a higher average rating (4.93 stars) than homes (4.8 stars). He explained that Airbnb uses a sophisticated vetting operation with third-party vendors to check credentials and licenses, a process he believes is scalable and crucial for building customer trust.

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CFO Ellie Mertz described Q1 as volatile, with a strong January followed by a soft February that rebounded in March. She noted that while headlines are volatile, this pattern shows consumers may pause but still follow through with bookings. For expansion markets, she highlighted that Latin America's growth accelerated from 2024 and its Q1 growth was above the prior year's Q1, demonstrating sustainable momentum from localization efforts.

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CFO Ellie Mertz explained that new offerings will be merchandised mindfully based on the guest journey, personalization, and timing to avoid disrupting the core booking flow. She confirmed that a key criterion for new businesses is their ability to create a flywheel, making the core offering better, encouraging more frequent bookings, and increasing overall app engagement.

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CEO Brian Chesky asserted that the offering can be both unique and scalable, noting that most of the foundational technology investments to create an extensible platform have already been made. He explained that marketing will be integrated under the main Airbnb brand as a 'branded house,' avoiding the need for major, separate campaigns. While there will be investment, he stressed it would not require the company to go 'deep into the red.'

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CEO Josh Silverman attributed the GMS improvement to enhanced app experiences, personalized owned marketing channels, increased paid social investment, and PLA martech improvements, alongside stable consumer spending. CFO Lanny Baker clarified that the high-twenties margin reflects near-term investments in growth initiatives like the app and machine learning, and that the long-term profitability outlook for the core marketplace remains strong and highly attractive as growth returns.

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CEO Josh Silverman outlined a dual approach. For near-term GMS, dedicated 'value capture' squads will focus on conversion driving, including optimizing newly launched surfaces and applying ML to lower-funnel marketing. For the medium-term, he emphasized improving browsing experiences to gather more user data for personalization and enhancing quality signals using LLMs to identify and elevate the most unique and artisanal items on the platform, which he believes will drive frequency and loyalty.

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CEO Ernie Garcia explained that operationally, the growth is manageable as it will be spread across an expanding network of facilities, keeping the per-location ramp rate in line with historical achievements. On the demand side, he argued that demand has not been the primary constraint on growth. He believes the company's superior and stable offering, enhanced by the network effects of scale (e.g., better selection, faster delivery), will continue to drive sufficient demand to capture share in the large used car market.

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CEO Ernie Garcia explained that the marketplace's fundamental role is to create a more efficient channel from a car's previous owner to its next, leveraging Carvana's unique reconditioning and wholesale assets at ADESA sites. He emphasized that building this foundational capability is a long-term project that requires significant work to scale but serves a very large potential market and deepens their vertical integration.

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CFO Ravi Inukonda attributed the AOV increase primarily to a mix shift toward the growing grocery business, where basket sizes are increasing as consumers become more habituated. He noted that restaurant AOV has been stable. For FX, he stated there was a roughly 1% impact on year-over-year GOV growth in Q1, and some impact is embedded in the Q2 guidance.

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CFO Ravi Inukonda explained that S&M leverage stems from product improvements that boost Dasher and consumer retention, reducing acquisition costs, and expects this trend to continue at a slower pace. CEO Tony Xu stated that large grocery baskets are 'cherries on top' and not required to make the grocery business model work, thanks to DoorDash's low-cost logistics structure. Ravi Inukonda added that the company's advantage is its ability to serve all basket sizes profitably.

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CFO Matt Skaruppa explained that Max's growth is driven by both new-to-paid users and a significant number of upgrades from existing subscribers. He confirmed Max remains a lower gross margin percentage product but delivers higher gross profit dollars, and its margin profile is expected to improve throughout the year as AI costs decline and optimizations are implemented.

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CEO Luis von Ahn explained that the primary challenge is shifting the long-standing word-of-mouth perception that Duolingo is only for beginners. This requires evolving marketing tactics beyond viral social media stunts to more directly communicate the depth of advanced content. CFO Matt Skaruppa added that the company is increasing absolute marketing spend to support this while still achieving operating leverage on the marketing line.

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COO Jen Wong identified three key growth drivers with significant runway: the scaled channel (SMBs), performance objectives, and international markets. On DPAs, she noted they are in early beta testing but are showing encouraging results, with a 90% ROAS gain in tests, and the focus is on improving ML models and product catalog ingestion.

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COO Jen Wong acknowledged that the newer conversation placement still has less demand than the feed, which can affect pricing. However, she noted that tools like multi-placement optimization are helping grow demand by fluidly optimizing advertiser spend across surfaces to achieve outcomes, familiarizing advertisers with the unit's performance.

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CEO Jeremy Wacksman explained that while specific conversion data for Real-Time Touring isn't broken out, touring customers in general convert at about 3x the rate of other leads. He noted that Real-Time Touring will account for over 25% of connections by year-end, contributing to overall conversion improvements. Wacksman clarified that Real-Time Touring is available across both payment models, emphasizing the strategy is about identifying high-intent customers for top-performing agent partners.

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CFO Jeremy Hofmann advised focusing on the long-term trend of Zillow's significant outperformance versus the industry. He noted that Zillow's customer base indexes more toward the mortgage-dependent buyer, a segment that is underperforming the broader housing market by 800-1,000 basis points. Despite this, he highlighted Zillow's consistent double-digit total company revenue growth as proof of its strong execution and positioning.

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CFO Ewout Steenbergen stated that the company does not quantify the booking window's impact but described it as a 'slight benefit' in Q3. He noted that Booking Holdings believes it grew faster than the North American market in Q3, driven by investments in listings, alternative accommodations, brand marketing, and product enhancements, positioning itself as a challenger in the market.

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